william-hill-approached-by-888-and-rank-for-gambling-merger

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William Hill approached by 888 and Rank for gambling merger
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UK wagering company William Hill has actually been approached by rival gambling business 888 and Rank Group about a merger.
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William Hill said it would "listen to and consider" any proposition.

However, it was unclear that a mix of William Hill, 888 and Rank would "deliver superior value", the business stated, external.

Online operator 888 and Rank, the UK's greatest gambling establishment chain, stated they saw "significant commercial logic in the yohaig code mix".

William Hill said the technique was "highly preliminary", while Rank and 888 said they had not yet made an official deal to the bookie's board.

Shares in William Hill increased 4.8%, while 888 shares rose 3.4% and Rank lost 0.5%.

'Surprise'

The move comes simply days after William Hill's chief executive, James Henderson, was ousted from the UK's most significant wagering shop operator following a series of earnings warnings.

Mr Henderson, who took the helm in August 2014, had failed to solve issues in the firm's struggling online company.

In May, its most recent trading upgrade, the firm stated, net revenues had fallen 11% in its online division in the 17 weeks to 26 April.

William Hill's shares have actually dropped 21% since the start of the year, valuing the former FTSE 100 firm at ₤ 2.7 bn.

David Jennings, an analyst at Davy, said the news was "unquestionably a surprise, considered that the combined value of 888 and Rank is ₤ 1.7 bn".

Rank and 888 said there was "no certainty that any deal will ultimately happen".

Rank's primary executive, Henry Birch, is a former head of William Hill's online department.
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Under UK takeover rules, the companies have until 21 August to either make a company deal or walk away.

The potential quote follows William Hill tried to acquire 888 last year in a ₤ 720m bet9ja's welcome offer, but the deal collapsed after 888 rejected the bet9ja's welcome offer as too low.
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Ever since, rival betting companies Ladbrokes and Gala Coral have actually agreed a ₤ 2.3 bn merger which got initial regulator approval in May.

The combined group would make it bigger than William Hill, presently the biggest UK bookmaker based upon number of stores.

Irish bookie Paddy Power and online operator Betfair likewise agreed to join forces last September.

Gambling industry bets on combination

William Hill and 888 end bid talks
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20 May 2016
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